Grab's GoTo takeover bid: a step too far for Indonesia?
As speculation mounts over a potential acquisition of Indonesian consumer tech giant GoTo by
Singapore -based Grab, analysts warn the deal could face opposition in
Indonesia over foreign ownership concerns and the regional clout of the potential owner.
The reported deal would value GoTo at around US$7 billion, according to a Reuters report on May 7, citing two unnamed sources familiar with the matter. The proposal reportedly involves Grab acquiring GoTo's international unit and most of its domestic business – excluding its finance arm.
If the deal is confirmed, it could be finalised as early as the second quarter, heralding a major consolidation in Southeast Asia's e-commerce space, which is led by Grab's US-listed platform that spans ride-hailing, food delivery, digital payments and financial services.
News of the potential merger buoyed investor confidence. Shares of Jakarta-listed GoTo have surged 20 per cent since the start of the year, reaching a market value of roughly US$5.8 billion as of May 7, according to London Stock Exchange data.
Grab's shares on Nasdaq also climbed 2.4 per cent over the same period, valuing the company at nearly US$20 billion.
Patrick Walujo, chief executive officer of Indonesia's GoTo. Photo: GoTo
However, Grab Indonesia on Thursday dismissed speculation about the merger, saying it was 'not based on verified information'.
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